Unformatted text preview: • Value assets (stocks, bonds) • Value projects (capital budgeting) Looking back, the important implicit assumptions are: • Large, publicly owned businesses • Diversified investors • Efficient markets at equilibrium • Psychic rewards are ignored BUT…. .sports organizations differ: • are small and privately owned • have owners who are under-diversified • operate in inefficient markets • are driven by significant psychic rewards...
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- Spring '09
- Financial Markets, Lump sums Periodic, equilibrium Psychic rewards, significant psychic rewards, important implicit assumptions